British Airways and Iberia agree to merge17 November 2009
British Airways Plc agreed to a $7 billion merger with Spanish carrier Iberia Lineas Aereas de Espana SA, ending more than a year of talks on a tie-up aimed at fighting a slump in travel and closing the gap with competitors.
Under the all-share deal, British Airways investors will own about 55 per cent of the business, to be led by Willie Walsh, the UK carrierâ€™s chief executive.
British Airways needs a bigger network to compete with larger rivals Air France-KLM Group and Deutsche Lufthansa AG. The combination will meld the UK companyâ€™s web of US routes with Iberiaâ€™s Latin America services, extending its leading position in the lucrative trans-Atlantic market and consolidating its status as Europeâ€™s third-largest airline.
1 April of 2010 at 09:58
[…] the boards of both airlines remain committed to the merger – first announced in November, their plans to list a new holding company in both London and Madrid have run into trouble, […]